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Sunday, 14th April 2024
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US private placement trend continues Back  
Irish corporate Kingspan has just transacted a $200 mn deal.
Building materials group Kingspan Group Plc has just transacted a $200 million US private placement.
Kingspan group finance director, Dermot Mulvihill, said that the issue has introduced a new investor group and improved Kingspan's capital structure by lengthening its debt maturity profile, all at very competitive interest rates.

There has been a growing trend over the last number of years for Irish companies to raise funds in the US private placement market and to swap these proceeds into a currency that its businesses operate in, with Kingspan following in the steps of Bord Gais, Greencore and the Kerry Group, amongst others, in issuing these securities.

The deal was facilitated and arranged through Bank Of Ireland Corporate Banking with Macquarie Securities (USA) Inc acting as placement agent. Bank of Ireland Global Markets was awarded the swap auction mandate on the transaction. It is the first time that a placement of this size and nature has been originated and swapped in its entirety into an issuer's local currency requirements by a domestic owned Irish bank.
The private placement also marked a first for Bank of Ireland's Global Markets division as it controlled and ran the swap auction. It also worked closely with Kingspan Group plc on managing the US$ and EUR interest rate risk arising out of this transaction.

Pat Gaynor, managing director, Bank of Ireland Corporate Banking said, 'The US private placement market provides a very attractive source of long term financing for Irish issuers as there is a strong demand for European credits (and Irish credits in particular) and tremendous capacity with approximately $40 billion in annual issuance within the overall private placement market.

Headquartered in Kingscourt, Co Cavan and with a current market capitalisation of €1.5 billion, Kingspan is a leading manufacturer and marketer of value added building materials across five core areas (insulated panels, structural and off-site, insulation boards, raised access flooring and environmental containers) and with operations spanning Ireland, the UK, the US and mainland Europe.

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